Mortgage Payment Calculator

A common guideline is the 28/36 rule — spend no more than 28% of gross income on housing costs and 36% on total debt. On a $100K salary that means roughly $2,333/month for your mortgage payment including taxes and insurance. At current rates and with a 20% down payment, this typically translates to a home in the $350K–$450K range, depending on property taxes in your area.

Private Mortgage Insurance (PMI) is an extra monthly fee lenders charge when your down payment is less than 20% of the home price. It protects the lender — not you — in case of default. PMI typically costs 0.5%–1.5% of the loan amount per year. You can avoid PMI by making a 20% down payment, choosing a VA or USDA loan (which have no PMI), or requesting removal once your equity reaches 20%.

A 15-year mortgage has higher monthly payments but saves you tens of thousands in interest and builds equity faster. A 30-year mortgage offers lower monthly payments, giving you more cash flow flexibility. For example, on a $240K loan at 6.5%, the 30-year payment is about $1,517/month vs. $2,091 for 15 years — but total interest drops from $306K to $136K. Choose 15 years if you can comfortably afford the higher payment; otherwise the 30-year term keeps your budget flexible.

Most calculators cover principal, interest, taxes, insurance, and PMI. However, your actual housing costs may also include HOA fees, maintenance and repairs (budget 1%–2% of home value per year), utilities, closing costs (2%–5% of the loan), and any special assessments. Factor these into your overall budget before committing to a purchase price.